So you are preaching to us about the smashing success of U.S. Fed policies upon the U.S. economy... From Canada... Where you reside... Seriously WTF... STFU & go back to your putine & snowmobiles.
Central Banks Fight to Ensure Crisis Tools Become the Norm
- Thread starter Banjo
- Start date
So you are preaching to us about the smashing success of U.S. Fed policies upon the U.S. economy... From Canada... Where you reside... Seriously WTF... STFU & go back to your putine & snowmobiles.
Ignorant American, makes sense.
I am not saying you are wrong, but you haven't really replied to my post.
We can debate anything, health care, taxes etc. But why not keep it on topic for a while?
Let's assume you went on a great 2-week vacation to South America, putting the cost on your credit card. Now you are back home happily talking about your experience and showing pictures to your buddy (me). You are declaring that you had such a great time, you resolved to take many more such vacations in the future.
Why does it make me a gloom-and-doomer to point out the fact that vacations cost money and that you haven't even paid off the old trip yet?
...Says the guy living in Canada to the guy who is not an American but resides in said country... On the subject of the state of the economy in said country.
https://en.wikipedia.org/wiki/Ignorance
There's no free lunch dude. The pain was simply deferred and in the process has just set things up for eventual and even more extreme pain. We'd probably be better off had they just cut rates and did no QE whatsoever.
Or here's a crazy idea... Raise rates back to a reasonable level, oh, adunno, over ten years ago? It all got distorted by Greenspan, the Fed failed to raise rates after the dotcom crash ENDED (recall floor peeps booing the Fed decisions not to raise rates in the early 2000's?) There's your problem right there. Things are so distorted now that there is no way of knowing where we "should" be in the cycle; had we taken moderate amounts of normal "pain" back then, we probably would have exited the negative periods (2 cycles of full crazy have passed, not just one)quickly enough & gone on to have a nice growth cycle or two, not this death spiral we are experiencing. No low rate policies have certainly not been a positive, there is no free lunch, no such thing as a "win-win", only a feeble minded or delusional individual can believe keynesian economics can possibly work.
You'll also notice the permabull types continually defend this broken monetary policy because they're usually long-only types who benefit from it. They have to believe because not believing means they have to consider how long they should actually be - and hence also consider the viability of their current investments. You know, that whole "is the trade even valid anymore?" thing.
I never gave it that much thought, just assumed these types as idiots that are incapable of independent thought - The product of a brainwashed society and intellectually starved upbringing - So they just accept what they are told is "the right way to do things".
Since the Fed is in the real estate business now, do they have an REO department yet?
I wish you guys would convince me that you really believe this bullshit you keep spouting by shorting the hell out of everything. But I haven't seen it yet. When you start putting your money where your mouth is I'll start paying attention.
One of the things often lost on these woe is me soothsayers is the source of all that Tarp and Stimulus money. It was QE of course, and had QE not been there to compete on the secondary market the rates paid by the Treasury to borrow that much that quickly would have been far higher. So don't make the mistake of thinking that QE didn't do anything. The Treasury is very likely going to get its principle with interest back on TARP. Most of the Treasury issues bought by the Fed have short maturities, 10 yrs or less, and can be retired as the Fed sees fit. The MBSs they acquired from Banks are longer term. You can follow the makeup of the Feds balance sheet at the NY Fed's website. Remember the Fed does not give money away to banks. Banks that had insufficient assets to be solvent went belly up (lots of them) or if they were large enough, Paulson got on the phone and tried to arrange a takeover, e.g., WAMU. But every bit of money credited to reserve accounts was backed by assets, discounted for deteriorating quality. The Fed is not a charity organization.
One of the things often lost on these woe is me soothsayers is the source of all that Tarp and Stimulus money. It was QE of course, and had QE not been there to compete on the secondary market the rates paid by the Treasury to borrow that much that quickly would have been far higher. So don't make the mistake of thinking that QE didn't do anything. The Treasury is very likely going to get its principle with interest back on TARP. Most of the Treasury issues bought by the Fed have short maturities, 10 yrs or less, and can be retired as the Fed sees fit. The MBSs they acquired from Banks are longer term. You can follow the makeup of the Feds balance sheet at the NY Fed's website. Remember the Fed does not give money away to banks. Banks that had insufficient assets to be solvent went belly up (lots of them) or if they were large enough, Paulson got on the phone and tried to arrange a takeover, e.g., WAMU. But every bit of money credited to reserve accounts was backed by assets, discounted for deteriorating quality. The Fed is not a charity organization.